Washington, Dhu-AlQa'dah 10, 1436, Aug 25, 2015, SPA -- Sales of new U.S. homes rose in July, the government reported Tuesday, with the trend pointing to housing-market strength that should support economic growth for the rest of the year. The Commerce Department said new-home sales rose 5.4 percent last month to an annual rate of 507,000, recovering from a decline in purchases in June. Buyers have crowded into the housing market this year. Supported by solid job growth over the past two years and relatively low mortgage rates that are about two percentage points below historical standards, sales of new homes jumped 21.2 percent through the first half of 2015. The housing market is gaining momentum, with data last week showing home re-sales surging to a nearly 9-year high in July, and groundbreaking on new homes climbing to its highest level since October 2007. Housing is expected to contribute to gross domestic product (GDP) this year, but remains constrained by a persistent shortage of homes available for sale. --SPA 19:31 LOCAL TIME 16:31 GMT www.spa.gov.sa/w